Home Loans
All You Need To Know
CONFUSED?
Relax. Buying a home is a big deal, so it’s okay to feel a little bamboozled. That’s why it’s important to get as much information as you can before you make any decisions. Just call into any B&E branch and talk about your loan requirements to one of our lending specialist staff or call us on 1300 306 716. We’re happy to help!
Meanwhile, please use this FAQ for a few helpful hints.
How much can I borrow?
That depends on your circumstances. If you answer a few simple questions, a B&E loan adviser can quickly tell you how much we could lend you, subject of course to our normal credit assessment process. It’s a good idea to find this out and even get a conditional pre-approval, so you know how much you can offer if you suddenly find your dream home. Until then, you’re better off not signing any contracts for sale.
If you’d like to find out how much you may be able to borrow even before you come and see us, you can do that too! Click on the lending tab on our home page, and you’ll find a range of helpful calculators!
How big a deposit do I need?
We know it can be hard to save particularly if you’re paying rent or have been busy paying off other loans, so B&E has made buying your home easier. Generally you will need a deposit of between 3-5% of purchase price, but eligible borrowers may borrow up to 100% of our valuation of the property by paying a one-off mortgage insurance premium at the start of the loan,. Just ask us for details.
What if I’m buying at auction?
It’s easy to get caught up in the excitement of an auction, so it’s vital that you already know how much you can borrow and on what terms and conditions. We strongly recommend that you obtain the auction details in advance and come and see us to arrange a full loan approval beforehand.
What are the costs involved?
Aside from the loan itself, there are other costs involved with buying property, including stamp duty, registration fees, property insurance, pro-rata rates and legal costs. As a rule-of-thumb, these costs usually amount to approximately 5% of the purchase price of the property . A B&E loan adviser can get you started, but you should talk to a solicitor to guide you through this.
Will I really need a solicitor?
We certainly recommend it!
Conveyancing is the process where contracts are checked and properties are transferred from one party to another. The sales contracts are normally prepared
by the real estate agent or seller’s solicitor and then forwarded onto your solicitor to be checked prior to you signing.
What about the First Home Owner’s Grant?
If you’re an eligible first home buyer, you will be entitled to a $7,000 grant (subject to ongoing government approval). In
Will I need property insurance?
Yes. Once you have signed a contract to purchase a property you will need to take out a sufficient level of property insurance. B&E is an intermediary for a leading insurance company with very competitive rates, so talk to us and we’ll get you covered. We will need a copy of your insurance details to confirm that adequate cover is in place.
Is there anything else?
Remember that taking out a home loan is a big commitment and that life is full of surprises. You can protect against unforseen circumstances through additional insurance, which will protect your loan repayments in the event of death, disability or involuntary unemployment.
How to apply
(In Person)
Once your B&E loan adviser has told you about your home loan options and helped you to decide which one is right for you, it’s time for you to tell us a few things. When you’re ready to apply you’ll have to bring a few documents with you, but don’t worry – we’ll help you through the paperwork.
(On Line)
If you’re unable to visit one of our branches, you can apply online 24/7, it’s quick and easy, and you don’t even have to be an existing customer of B&E. Simply visit the home page of this website and follow the prompts.
What is your income?
If you are an employee – you need to provide a current payslip that includes at least 3 months year to date income, or a current payslip plus your most recent Group Certificate, or a letter from your employer on business letterhead confirming your salary package arrangements.
If you are Self-employed - It’s no problem. We’ll simply need your last 2 year’s financial statements and taxation returns (both business and personal). Projected income and expense details may also be required.
If you receive rental income – You need to provide a copy of the fully completed lease agreement.
If you receive a pension and/or benefits - You will need to provide a current letter from the payer on business letterhead confirming your income. (This includes payments such as Centrelink Pensions, Family Tax Benefits and Veterans Affairs Pensions).
What is the purpose of your home loan?
Purchasing a new home? – Where applicable, we need to know you have a deposit and that you’ve managed to save for it. We’ll need your account statements showing your savings for the past six months. Your bank or financial institution can help you with this if you haven’t kept any records. We can also help you obtain a Statutory Declaration confirming receipt of any non-repayable gift or donation.
We’ll also need a fully completed copy of the contract for sale, signed by both you and the vendor. The contract is normally drawn-up by your real estate agent or the seller. Before signing the contract, we recommend that you appoint a solicitor to advise you and act on your behalf.
Refinancing? – When you are consolidating existing loans, we need to know that the conduct has been satisfactory and the relevant details so we can pay them out. We’ll need the most recent six months worth of statements on home and commercial loans being refinanced and three months worth of statements on other loans (including personal loans and credit cards) being refinanced.
Building a new home using a Contract Builder? - We’ll need copies of the building contract, the builder’s Indemnity Insurance, and the council-approved building plans and specifications.
Owner Builder? – We’ll need copies of the Council approved plans and specifications, detailed costings, fixed price quotes and Insurance Certificates of Currency.
As always, if any of this is not clear or you’re not sure what to bring, just ask us and we’ll clear things up.
Want to pay off your loan faster?
It is possible to save thousands of dollars and to cut years off your home loan. Of course, there are common-sense tips you should use to make your repayments easier, but there are also a few things you might not know about that B&E can help you with.
For example, if you select the Flexichoice or Topline packages, you can also choose to open a B&E Mortgage Off-Set Loan Saver account. This is just like a normal savings account, which includes telephone and internet banking, a cheque book and Visa debit card if you want, but with one important difference. Every dollar in that account is 100% offset against the balance of your home loan, which means that you pay less interest.
It works like this: if you owe $150,000 on your home loan, but also have $5,000 in your Mortgage Off-Set Loan Saver account, you will effectively be paying interest on an outstanding amount of $145,000. The more you save, the less you pay. This is tax effective too, because the notional interest that you earn on the Mortgage Off-Set Loan Saver account is deducted from the interest payable on your Flexichoice or Topline home loan, so it is not taxable.
The best advice we can give you for saving money on your home loan is to follow a sensible household budget, to make payments as regularly as possible – weekly or fortnightly if you can – and to pay more than the minimum amount required. This will quickly get you ahead and mean that you can take advantage of B&E’s redraw feature. That way if you suddenly find that you need some cash, you are able to withdraw from the amount by which you are ahead on your home loan. Please note that a redraw fee applies depending on which type of B&E home loan you have.
Important: Terms and conditions, including fees and charges apply to B&E home loan products. Full details are available on application.
The information contained in this brochure should not be considered financial advice. It is of a general nature only and does not take into account your personal circumstances. You should carefully consider your needs before applying for any home loan, loan saver account, property insurance or consumer credit insurance, including the relevant terms and conditions and Product Disclosure Statement (PDS).
And if you have any questions, just ask us.